When you have made up your mind to declare bankruptcy in North Carolina, it's important that you take the following information into consideration. First of all, if you haven't yet sought credit counseling, you have to do that first. New bankruptcy laws passed in 2005 require anyone declaring bankruptcy to first seek six months worth of credit counseling. Don't see this as a bad thing though; after all, you may be able to straighten out your finances without having to declare bankruptcy.
Also included in the 2005 Bankruptcy Act is the means test. Now, when you declare bankruptcy in North Carolina, or any other state in the country, you will have to have an annual income that is less than the median annual income for your state. If you make more than that, your only choice will be to file for Chapter 13 bankruptcy which does not wipe away old debts.
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Once you see a lawyer, he or she will have you collect paperwork that documents your current financial situation. This is needed in order to fill out your petition for bankruptcy in North Carolina, as well as the other needed forms as well. Included in this paperwork is the following: your current income sources, major financial transactions in the last two years, monthly living expenses, secured and unsecured debts, and all assets, possessions, and real property that you own. It is also a good idea to bring along your last two tax returns, real estate deeds, car titles, and any loan documents that you may have.
The exemptions that you may claim will be different depending on which state you reside in. Exemptions are the property that you may claim so that your creditors may not take it. Here are some of the exemptions that you will be allowed when you declare bankruptcy in North Carolina: real or personal property used as a primary residence up to $10,000, employee group life insurance, fraternal society benefits, business partnership property, pensions for fire fighters, police officers, legislators, government employees, and teachers; various personal property, public benefits, tools of your trade, and wages received 60 days before declaring bankruptcy that are needed for support.
When you file for bankruptcy in North Carolina, you and your attorney must submit your two page petition as well as the other obligatory paperwork in to the North Carolina district bankruptcy court. If you're thinking about filing for bankruptcy, you can request a consultation with a bankruptcy attorney in your area to discuss the specifics of your situation.